Cerrado Gold Reports Positive Drill Results from Its Initial Satellite Exploration Program at the Monte Do Carmo Project in Brazil

RESULTS CONFIRM DISTRICT SCALE POTENTIAL OF MONTE DO CARMO

• Visible gold and mineralized alteration zones prolific throughout the property
• Six of the initial the eight targets drilled returned relevant intercepts, all within a 6 km radius of the Serra Alta deposit
  • Baru and Fartura corridors believed to extend for over 1 km resembling the spatial footprint of the Serra Alta deposit
  • Capitão mineralization and alteration footprints extend for 500 m of strike length and up to 700 m in lateral extent
  • Bit-3 reveals new style of mineralization associated to sheer zone in permissive ultramafic granite, this shear zone contact extends for 15 kms along an underexplored NE trend
  • At Sucuri, a new high-grade sheared vein zone has been discovered
• Follow up programs planned for 2022

Toronto, December 15, 2021 - Cerrado Gold Inc. (TSXV: CERT) (OTCQX: CRDOF) ("Cerrado" or the "Company") is pleased to announce the initial results from its exploration drill program focused on various Satellite deposits within its Monte do Carmo ("MDC") Project, located in Tocantins State, Brazil. The exploration program initiated in Q2/21 was designed to better define the district potential by targeting satellite deposits adjacent to the Sierra Alta deposit as well as extensions to Serra Alta itself. Based on the success of the program, additional work is now being planned to follow up on these results. The Company is reporting assay results of 39 drill holes, drilled exclusively at satellite targets (see Figure 1. and Tables 1. & 2.).

Drill Hole Highlights by target area (all composites are reported as true thickness):

Capitão

FCP-004

• 2.9 m at 2.13 g/t Au, from 123.56 m

FCP-005

• 7.22 m at 0.94 g/t Au, from 71.65 m

FCP-007

• 4.44 m at 2.14 g/t Au, from 165.41 m ; and
• 1.01 m at 8.63 g/t Au, from 232.74 m

FCP-010

• 1.92 m at 6.81 g/t Au, from 255.64 m

Fartura

FFA-001

• 5.35 m at 1.85 g/t Au, from 62.83 m

FFA-002

• 5.04 m at 1.50 g/t Au, from 32.56 m

Sucuri

FSC-001

• 1.00 m at 9.72 g/t Au, from 32.56 m

Bit 3

FLD-005

• 6.72 m at 1.50 g/t Au, from 155.35m
  • Including 2.57 m at 3.71 g/t Au from156.32 m

Baru

FBU-004

• 20.05 m at 0.71 g/t Au, from 240.05 m
  • Including 1.02 m at 2.23 g/t Au from 243.08 m

Mark Brennan, CEO and Co-Chairman commented "The preliminary drill results support our hypothesis for the district potential at Monte do Carmo. We see substantial evidence of visible gold and mineralized alteration throughout the property and expect most of the satellite deposits to add material ounces to an already extremely robust resource base. We will continue extensive testing and drilling of the newly found discoveries in the new year. "

Cerrado's overarching exploration approach in the Monte do Carmo district continues to be a parallel process. First to define as accurately as possible the geology and mineralization continuity of Serra Alta, the most advanced target and conceptual anchor deposit; and secondly, use this knowledge to test the full strike of the permissive contact zone to understand the overall district potential. Drilling on the satellite targets is ongoing.

It is Cerrado's belief based upon surface indications like garimpos (artisanal mining), Geochem anomalies and outcropping of vein zones, jointly with sparse relevant historic drill along this domain, there is a high probability of discovery of substantial additional mineralization potentially resembling the Serra Alta deposit scale and tenor along the contact zone.

The regional exploration program at the Monte do Carmo project was designed to undertake initial exploration of the numerous targets on the project property to demonstrate the potential to grow the known resources outside of the Serra Alta deposit.

The program commenced in Q2/21 immediately after the completion of Phase 1 drilling, which focused on upgrading and expanding the existing resources at the Serra Alta. Drilling during H2 2021 has focused on satellites including Capitão, Bit 3, Baru, Fartura and Ferradura as well as extensions to the existing Serra Alta deposit. The main satellite targets are shown in Figure 1. and relevant details of the drill program are shown in Tables 2. and 3.

Figure 1. MDC Regional Geology

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/7487/107769_3a5583a2742b99e2_002full.jpg

The assay results reported in this press release were received up until November 30th, 2021 and represent the full extent of thirty-nine diamond drill holes, totaling 10,007 m completed at the Satellite targets. It should be noted that each target has only had a limited amount of drilling as compared to the Serra Alta deposit where approximately 6,250 meters (completed prior to Cerrado) of drilling was required to initially define the target and to understand the potential for resource definition.

Drilling in November and December is focused on the concealed Baru and Fartura trends (Figure 2.) where Cerrado believes there is the possibility of replicating the copula contact Serra Alta mineralization style in segments along these kilometric trends.

Figure 2. Location of Fartura and Baru trends

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/7487/107769_3a5583a2742b99e2_003full.jpg

Fartura Drilling

The Fartura Target is located 2 km to the northwest of Serra Alta, also sitting along the granite complex contact zone.

Four holes (FFA-001 to 004) were completed in Fartura. Core Logging and revised surface geological mapping confirmed that the host rock of the shallow mineralization (mined informally on surface) in Fartura is a porphyritic felsic volcanic. Visible gold and dense quartz veining occurred in holes FFA-001 and FFA-002 that returned relevant intercepts including 5.35 m at 1.85 g/t Au, from 62.83 m and 5.04 m at 1.50 g/t Au, from 32.56 m. The outline of mineralization at Fartura extends for over 200m in strike length and is open both to the north (under sedimentary volcanics) and to the south.

The fact that relevant quartz veining and visible gold is found in felsic volcanic is very encouraging as the mineralization intensity is expected to increase in underlying granitic rock. Granitic rocks are exposed approximately 800 m to the south with showings of quartz veins and artisanal mining, this opens the potential for a kilometer scale mineralized trend (See Figure 1). Current drilling efforts are focused on the contact zone underneath the felsic volcanics along this trend. The concept of better endowment along a granitic copula follows the Serra Alta model that has demonstrated that better grades and continuity are expected in the more permissive granitic rock, especially in proximal intrusive contact zones.

Figure 3. Fartura Drill Hole Locations & Highlighted Results

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/7487/107769_3a5583a2742b99e2_004full.jpg

Baru Target

The Baru Target is located 1 km to the west of the south pit block of Serra Alta. Trenching and traversing carried out in Q2 revealed notable resemblance of the granitic units with Serra Alta including equigranular mid grain size granite, quartz sheeted veins, potassic alteration and staining along veins after sulphide oxidation. As in the case of Fartura south, the granitic rocks are exposed in a fault bounded block and terminate to the north where the felsic volcanic units outcrop (possibly concealing in depth the continuity of the granite (Figure 1).

The exposed altered and mineralized granitic rock area was drilled tested with 8 holes spreading more than 500 m in a lateral sense and 200 m in the strike direction. This press release reports results for the first 6 holes (FBU-001 to 006, see table 3). Hole FBU-004, considered a discovery hole, shows notable mineralization continuity including 20.05 m at 0.71 g/t Au, from 240.05 m. This hole was collared immediately to the west of the Agua Suja Fault, a Northeast/Southwest striking regional fault that is believed to have controls both on possible primary loci of extensional gagues corridor and on later vertical offsets that can put into contact mineralized and unmineralized blocks.

As is the case of Fartura (see presiding paragraphs) the felsic volcanics that sit in fault contact to the north show alteration and quartz veining along a Northeast trend that extends for over a 1 km (Figure 3). Cerrado currently has 2 rigs drilling through the volcanics with the dual objective of assessing any relevant mineralization hosted by the volcanic rocks and also testing the thickness of the sequence and the nature and mineralization of the underlaying intrusive rocks. Cerrado believes that the scale of the Baru target resembles that of Serra Alta and that similar structural levels of the granitic cupola that host the mineralization in Serra Alta could be preserved under the volcanic cover.

Figure 4. Baru Drill Hole Locations & Highlighted Results

To view an enhanced version of Figure 4, please visit:
https://orders.newsfilecorp.com/files/7487/107769_3a5583a2742b99e2_005full.jpg

Capitao

The Capitão Target is located 6 km to the south of Serra Alta along the same granite complex. The hosting intrusive unit, as is the case of Serra Alta, is covered by quartzites and Devonian horizontal sediments. The target shares similar mineralogical paragenesis and cinematic tectonics with Serra Alta.

Cerrado completed 10 drill holes in the Capitão target, totaling 3,793 m and notably expanded the footprint of the target previously constrained by historic drilling (Kinross 2007). The mineralized zone after successful extensional step outs now a strike length of 500 m with notable wide lateral extents up to 700 m.

Capitão mineralization, shows resemblance with the Serra Alta granite intrusion hosted quartz/gold. A distinct feature of the mineralized granite areas in Capitão is the chlorite dominated alteration. Quartz vein density and visible gold occurrence are relatively less intense than Serra Alta. This is reflected in the lower grade tenor and continuity. Notable results include hole FCP-007, that intercepted 4.44 m at 2.14 g/t Au, from 165.41 m and 1.01 m at 8.63 g/t Au, from 232.74 m. This hole is in section with whole FCP-005 that intercepted 7.22 m at 0.94 g/t Au, from 71.65 m effectively defining a 200 m wide mineralized corridor. Hole FCP-004, drilled 100 m to the south, returned 2.9 m at 2.13 g/t Au, from 123.56 m.

As is the case in Serra Alta mineralization is associated with quartz veins and sulphides (pyrite + galena + chalcopyrite). Cerrado believes that the mineralized trend drilled in Capitão might be relatively distal to the best endowed contact zone (e.g., felsic volcanics), which in terms of the current empirical exploration model constitutes the best loci for high grade mineralization. Follow up work in this target will include, some infill drilling to properly constrain grade shells purposed for completing a first resource estimate, and further scout drilling for possible concealed contact zones to test the hypothesis of better endowment along intrusive contact zones of copulas.

Figure 5. Capitão Drill Hole Locations Highlighted Results

To view an enhanced version of Figure 5, please visit:
https://orders.newsfilecorp.com/files/7487/107769_3a5583a2742b99e2_006full.jpg

Sucuri, Magalhães and El Dorado

The area between Capitão and Serra Alta, along the projected intrusive contact zone (Serra Alta context), is host to several additional targets including Sucuri and El Dorado.

Sucuri area is located ~ 1.5 km to the Northwest of Capitão and includes sheeted vein targets (Serra Alta type) and discrete shear zone veins (Giant Vein model). Four holes were completed in Sucuri following trenching, mapping, and geochemical soils sampling. Notable results include the new discovery of a high-grade sheared vein intersected with hole FSC-01 that returned a 1 m at 9.72 g/t Au.

The structure associated with this shear vein might extend to the southeast into the Magalhães vein, that has undergone intense historical artisanal mining. Drilling of this structure in Magalhães failed to intercept relevant mineralization. Cerrado conducted systematic drilling along 300 m of strike length of this structure in the Magalhães area, the structure was crossed but at mined out areas (garimpos) and at non mineralized shear zones.

Figure 6. Sucuri Drill Hole Locations & Highlighted Results

To view an enhanced version of Figure 6, please visit:
https://orders.newsfilecorp.com/files/7487/107769_3a5583a2742b99e2_007full.jpg

Drilling in El Dorado, target located 500 m to the south of the southern edge of the current resource outline of Serra Alta failed to provide any relevant results. It is believed that structurally, this block compromises less fertile granitic phases.

Bit-3 Target

The Bit-3 target was developed by Verena in the 1980s following up on an airborne geophysical anomaly that imaged a large mafic/ultramafic unit. In 2018 Cerrado completed five trenches and 4 drill holes with positive results that were complemented by new geological mapping, warranting additional work.

Drilling reported here was completed in Q3, 2021. Bit-3 was drilled and relevant gold grades from a biotite-quartz altered zone were returned in drill holes FLD-05 and FLD-06 (6.72 m at 1.50 g/t Au and 14.2m@ 0.69 Au g/t, respectively). The other Drill holes successfully intersected the continuity of shear zone, but with minor gold tenors. The current geological model of the mineralized zone indicates the potential of a down plunge and north strike extension. The sheared contact between granodiorite and ultramafic rocks extends to the northeast for about 15 Km. This regional trend, mainly included in Cerrado controlled land has undergone no systematic exploration and opens a new exploration front for the current scope of expanding the district gold resource. It is believed that along this strike length there is potential for replicating high grade shoots as the one preliminary shaped in Bit-3.

Figure 7. Bit-3 Drill Hole Locations & Highlighted Results

To view an enhanced version of Figure 7, please visit:
https://orders.newsfilecorp.com/files/7487/107769_3a5583a2742b99e2_008full.jpg

Table 1. Monte do Carmo Satellite Target Relevant Intercepts

Table 2. Drill Hole Collars

Table 2. Reported Holes by Target Area

Quality Assurance and Quality Control

Analytical work was carried out by SGS Geosol International Lab (SGS). MDC sends half core samples for sample preparation to the lab. SGS prepares samples at Belo Horizonte and at the same facility performs gold assays by fire assay (FAA505) or metallic screen (FAASCR_150_Au-Grav), the coarse fraction of metallic screen is assayed at Belo Horizonte and alternatively in Lima, Peru.

SGS has routine quality control procedures which ensure that every batch of samples includes three sample repeats and at least two commercial standards and two blanks. Cerrado uses standard QA/QC procedures, inserting reference standards and blanks, for the drilling program. The Reference material used are from CDN Resource Laboratories Ltd. and ITAK (Instituto de Tecnologia August Kekulé Ltda.).

Review of Technical Information

The scientific and technical information in this press release has been reviewed and approved by Sergio Gelcich., Vice President, Exploration for Cerrado Gold Inc., who is a Qualified Person as defined in National Instrument 43-101.

For further information please contact

Mark Brennan
CEO and Co Chairman
Tel: +1-647-796-0023
mbrennan@cerradogold.com

Nicholas Campbell, CFA
Director, Corporate Development
Tel.: +1-905-630-0148
ncampbell@cerradogold.com

About Cerrado Gold

Cerrado Gold is a gold production and exploration company with gold production derived from its 100% owned Minera Don Nicolas mine in Santa Cruz province, Argentina. The company is also undertaking exploration at its 100% owned Monte Do Carmo project located in Tocantins, Brazil. For more information about Cerrado Gold please visit our website at www.ceradogold.com.

Disclaimer

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release contains statements that constitute "forward-looking information" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation, All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements contained in this press release include, without limitation, statements regarding the business and operations of Cerrado Gold. In making the forward- looking statements contained in this press release, Cerrado Gold has made certain assumptions, including, but not -5- limited to ability of Cerrado to expand its drilling program at its Minera Don Nicolás Project and increase its resources. Although Cerrado Gold believes that the expectations reflected in forwardlooking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, Cerrado Gold disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/107769